Guaranteed income is money you can count on receiving regularly, regardless of market conditions, economic downturns, or how long you live. These are payments backed by a specific promise—whether from the government, an insurance company, or a pension plan—that will continue as agreed upon in your contract or benefit terms.

The most familiar form of guaranteed income is your paycheck while you're working. In retirement, guaranteed income sources might include Social Security benefits, traditional pension payments, certain annuity products, or even rental income from properties with long-term leases. This type of income provides a stable financial foundation that doesn't fluctuate with the stock market or depend on you making the right investment decisions.

Having guaranteed income in retirement means you can cover your essential expenses—housing, food, healthcare, utilities—without worrying about market volatility or the risk of depleting your savings too quickly. It's the financial equivalent of building your house on solid ground. While guaranteed income offers security, it often comes with trade-offs like reduced liquidity or potentially lower returns compared to other investments, making it important to understand how much guaranteed income you actually need.